The ruling Democratic Party of South Korea plans to implement a crypto tax plan from the beginning of 2025. The party is also considering raising the tax exemption threshold from around $1,795 to $35,919.
The ruling party in South Korea plans to implement a plan to tax crypto profits from the beginning of 2025, rather than continuing to delay it, according to a report by Seoul Shinmun on November 6.
Initially, a 20% tax (equivalent to 22% including local tax) on crypto profits was planned to be applied from January 1, 2022. However, the plan has been postponed twice to January 1, 2025 due to fierce reactions from investors and industry experts.
Although there have been proposals to delay it further, even until 2028, the Democratic Party of Korea (DPK) is determined to implement the plan on schedule. However, the party is revising the plan by raising the tax exemption threshold from 2.5 million won ($1,795) to 50 million won ($35,919).
Under the revised plan, to cope with the volatility of the cryptocurrency market, taxpayers can use a percentage of the selling price as the basis for calculating the cost, in case there are no accurate records of the original purchase price.
The DPK said that with a 50 million won tax exemption, only a small number of investors will exceed this threshold, making the application of the tax have little significant impact on the large blockchain user market.
The Democratic Party plans to pass the revised plan at the National Assembly's tax subcommittee vote on November 25 and the plenary session on November 26, according to Seoul Shinmun.
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The article South Korea to Impose 20% Crypto Tax from 2025 and Increase Tax Exemption Threshold first appeared on CoinMoi.
